The following transactions of Brewton Marine Supply occurred during 2016 and 201

Question

The following transactions of Brewton Marine Supply occurred during 2016 and 2017 (Click the icon to view the transactions.) Requirement More Info 1. Record the transactions in the al entries. Round amounts to the nearest whole dollar.) Begin by joumalizing the 2016 transactions, 2016 3 Purchased equipment for $20,000, signing a six-month, 8% note payable. 28 Recorded the week's sales of $51,000, one-third for cash, and two-thirds an account. Feb Feb 3: Purchased equipment for $20,000, s Jo Accou All sales amounts are subject to a 3% sales tax. Ignore cost of goods sold. Mar Apr 7 Sent last week's sales tax to the state Date 30 Borrowed $120,000 on a four-year, 4% note payable that calls for annual payment of Feb 3, 2016 interest each April 30. 3 Paid the six-month, 896 note at maturity. Aug Nov 30 Purchased inventory at a cost of $8.400, signing a three-month, 10% note payable for that amount. 31 Accrued warranty expense, which is estimated at 4.0% of total sales of $580,000 31 Accrued interest on all outstanding notes payable. Accrued interest for each note Dec Feb 28: Recorded the week's sales of $51,0 goods sold. 2017 Feb Apr 30 Paid the interest for one year on the long-ter note payable Jo Date Accoud 28 Paid off the 10% inventory note, plus interest, at maturity. Feb 28, 2016 Print Done Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Feb 3 Equipment a/c 20000 8% Notes payable 20000 (To record equipment purchase) Feb 28 Cash a/c 17510 Account receivable a/c 35020 Sales a/c 51000 Sales tax payable a/c 1530 (To record sales and sales tax payable) Mar 7 Sales tax payable a/c 1530 Cash a/c 1530 (To record sales tax paid) Apr 30 Cash a/c 120000 Notes payable a/c 120000 (To record notes payable) Aug 3 Notes payable 20000 Interest expenses 1600 Cash a/c 21600 (To record maturity of notes) Nov 30 Inventory a/c 8400 Notes payable a/c 8400 (To record purchase inventory) Dec 31 Warranty expenses 23200 Warranty liability 23200 (To record accured warranty liability) Dec 31 Interest expenses a/c 3270 Interest payable a/c 3270 (To record accured interest) Feb 28 Notes payable 8400 Interest payable (8400*10%*1/12) 70 Interest expenses (8400*10%*2/12) 140 Cash a/c 8610 (To record notes maturity) Apr 30 Notes payable 120000 Interest payable 3200 Interest expenses 1600 Cash a/c 124800 (To record notes maturity)

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